If you’re like many long-term investors, you probably have a piece of your portfolio in China. And the latest inflation data, may have you a little worried - at 3.6% it came in above expectations, driven by higher food prices.

The conventional wisdom is that, unlike the West where a little inflation is viewed positively, in China even the smallest uptick is met with skepticism because the government worries that inflation can lead to social unrest.

(According to that line of thinking, for millions of Chinese poor the cost of food makes up a large chunk of household spending. Inflation, of course, leads to higher food costs.)However, top trader Zach Karabell of RiverTwice tells us, that kind of thinking is old school.He says China now wants some inflation, just like the West. “With inflation comes wage growth, increased corporate profits and an ability to manage outstanding debt,” Karabell explains.And he says, the way to play the theme is with US listed consumer names that benefit from modest inflation in China. In other words, companies that benefit from wage growth and increased corporate profits.Karabell says “that’s Ralph Lauren, Coach, Tiffany , LVMH and Yum!”